Accenture (ACN, Financial) delivered a knockout quarter, sending its stock surging over 7% this morning. The consulting powerhouse reported $17.7 billion in revenue for fiscal Q1 2025, blowing past Wall Street's $17.1 billion estimate and marking a solid 9% year-over-year jump. The AI buzz is real—Accenture's generative AI bookings alone contributed $1.2 billion this quarter, as businesses scramble to scale their AI projects and cut costs. EPS came in at $3.59, a hefty 16% boost from last year, leaving analysts scrambling to revise their forecasts.
The real story? Accenture isn't just keeping pace—it's leading the pack. With new bookings hitting $18.7 billion, driven by decent growth in the Americas and EMEA, the company's AI strategy is paying off big time. From predictive maintenance in manufacturing to automating ad workflows, Accenture's GenAI tools are reshaping industries. The company also upped its AI workforce to 69,000, with plans to hit 80,000 by 2026. Operating margins improved to 16.7%, and free cash flow more than doubled to $870 million—strong signals of operational muscle.
Looking ahead, Accenture nudged its annual revenue growth forecast to 4%-7%, despite facing currency headwinds. While the mid-point falls just shy of analyst expectations, the market is loving its focus on sustainable growth and cutting-edge innovation. With $500 million in AI-driven revenue this quarter and a laser focus on scaling transformative projects, Accenture is proving it's not just part of the AI revolution—it's one of the forces shaping it. Investors, take note: Accenture's trajectory looks anything but average.
